Business Buying Guide - Detail

 Business Buying Guide - Detail

Summary:

The business buying process can be easy by following step by step business buying guide.  It is always good to check little things as much as possible when you buy since the business buying process takes a lot of details.

 

 

Keywords:

business for sale, businesses for sale, buy a business, sell a business, buying a business, selling a business

 

 

Article Body:

Business Buying Process

 

First, You have to determine your investment.  Usually, the minimum down payment made by the buyer is 30% of the purchase price.  For example, if the business purchase price is  $100,000 and the loan amount is $70,000 (70%), then the buyer's down payment needs to be $30,000 (30%).  Other possible expenses are inventories, supplies, escrow fees, license and permit fees, franchise transfer fees (if applicable), etc.

 

Then you have to set criteria for the desired business. Which includes the location of the business, type of business, price range of business, and desired income of the business.

 

After you decide your investment amount and criteria of business, you will need to find the right business that fits your needs.  You can search for business through online business listing service sites like www.BusiMarket.com  <a href="http://www.busimarket.com">Business For Sale</a>, local newspapers, or through local business brokers or real estate agents.

 

If you find a business that you want to purchase, you will need to evaluate the business through the current owner's income information and your projected income for the short term and long term. 

And then you need to make the decision to purchase a business or not.  If the business is right for you, you need to write a very descriptive and detailed contract (Purchase and Sale Agreement).

 

When you are writing an offer, you have to make sure the contract includes the following: Your offering price, Initial deposit amount, financing terms, and closing date.   Other terms and conditions that can be added to the contract are the buyer's loan approval, lease and lease approval from the landlord, the buyer to obtain all necessary licenses and permits, the franchisor's approval of ownership transfer, the buyer's Satisfaction of books and records, closing cost allocation, buyer training session, business equipment and fixtures in good working condition, inventories and supplies amount, seller's agreement not to compete, etc.

 

After you finish writing an offer, you need to present your offer to the seller.  Negotiate the price, terms, and conditions and settle with the final price and terms and conditions.

 

Now you will need to allocate the purchase price of the business that you are buying.  After you have done purchase price allocation, you will need to apply for a loan, license, and permits.

 

and then you will need to obtain a lease or sublease.  You will need to make sure you obtain the lease or get approval for lease assignment before closing of escrow no matter what happened. 

 

And then on or the day before the closing date, you will need to review the equipment list that is provided at the time of the acceptance of the Purchase and Sale Agreement and buy inventories and supplies. And then you can do the closing on the closing date.